The crew was apparently shooting for a dance sequence in the Filmcity when the incident happened.
Varun said 600 people were evacuated without any casualty.
"There was a fire and our set got burnt down. We safely evacuated 600 people and we will be back to work tomorrow. We won't stop dancing. #abcd2," the 27-year-old 'Badlapur' actor tweeted.
"Yes sadly there was a fire on set today but everything is fine & everyone is safe! Back to shoot tomorrow. We WONT stop dancing!!! #ABCD2,(sic)" Shraddha tweeted.